@dss08a @countonme123

If the APY of a savings account is 1.8%, and if the principal in the savings account was $2200 for an entire year, what will the balance of the savings account be after all the interest is paid for the year?

A. $2200
B. $2252.80
C. $2300
D. $2239.60

Question

@dss08a @countonme123 

If the APY of a savings account is 1.8%, and if the principal in the savings account was $2200 for an entire year, what will the balance of the savings account be after all the interest is paid for the year?

 		A.	$2200
 		B.	$2252.80
 		C.	$2300
 		D.	$2239.60

wolf1728 · Answer

The compound interest formula is
Total = Principal × ( 1 + Rate ) ^ years
2,200 x (1.018)^1
= 2,239.60

The answer is D